for fiscal year 1973, estimates for 1974 and 1975, and administrative costs when available are given. ELIGIBILITY CRITERIA Major eligibility conditions.-This section identifies the basic conditions such as age, disability, covered employment, years of employment, need, and dependency or other status required for entitlement to benefits under the specified program. Persons included.-For programs under which persons other than the primary beneficiary may receive benefits, such persons are identified. Conditions under which wives, husbands, widows, widowers, children and other persons may be considered as eligible dependents or survivors are defined. Income test. The extent to which the beneficiaries' income, employment or earnings or receipt of other transfer payments is considered in determining eligibility is covered in subsections under this heading. Income limits, definition of income, and treatment of earned and unearned income. These sections describe income limits applicable in income-tested programs (income levels below which eligibility for benefits may be established) and conditions under which employment or earnings may affect entitlement to non-income-tested benefits. Allowable exclusions or disregards of income or benefit reduction (tax) rates applied to earnings or other income are identified. Accounting period. This item is particularly relevant to the incometested programs and other programs, such as OASI and unemployment compensation, in which current earnings may affect eligibility or amount of benefit. The accounting period refers to the period of time over which current income is considered in determining amount of benefit and the frequency with which benefits are adjusted due to changes in income and family circumstances. This period of time ranges from a day or a week for unemployment compensation, to a month in public assistance categories, a year in respect to veterans pensions, and up to 2 years in some housing subsidy programs. OTHER CONDITIONS Work requirement and acceptance of training or rehabilitation.-Programs and conditions under which beneficiaries are required to seek work, register for employment, or accept employment, training, or rehabilitation are identified. Citizenship. This item refers to whether the program is limited to U.S. citizens, accepts aliens under certain conditions, or is extended to all eligible persons regardless of citizenship. Lien, recovery or assignment, transfer of property and relative responsibility. These sections usually apply only to income-tested programs and are omitted if they are not applicable. "Lien, recovery or assignment" refers to whether there are provisions for liens on property or other means of recovery of benefits paid, or whether requirements that assets be assigned to the administering agency may be imposed as a condition of receipt of benefits. Transfer of property refers to conditions in some assistance programs under which an applicant or beneficiary is ineligible for benefits if he transfers or disposes of property assets without a reasonable return or to make himself eligible for assistance. Relative responsibility refers to provisions which define specified relatives who are considered to be responsible for support of beneficiaries and conditions under which responsibility may be enforced. Institutional status.-This refers to any limitations in eligibility of residents, patients, or inmates of institutions for benefits under the program. Residence requirement.-Any residence requirements or limitation of benefits to persons residing in defined areas are described. BENEFITS AND SERVICES Primary determinants of amounts of benefits.-This describes the basis for benefit amounts, such as years of service and earnings in employment-related programs, and methods of determining need in income-tested programs. Relationship of benefit amount to family size.-Methods of determining amounts payable for dependents and survivors, if applicable, are described. Relationship of benefit amount to place of residence. Any variations because of place of residence are noted. Relationship of benefit amount to cost of living. This identifies programs which automatically increase benefits with upward changes in the cost of living and other programs in which increases have been legislatively or administratively authorized on an ad hoc basis. Amounts of benefits.-Levels and ranges of benefits are described. Comparisons of benefit amounts to the poverty level.-When possible, benefit levels are compared to the nonfarm poverty level. The subcommittee estimated poverty thresholds for July 1974 by inflating the Census Bureau figures for calendar year 1973 by 11.4 percent, a preliminary measure of the increase in the consumer price index between 1973 and the month of July 1974. The subcommittee thereby estimated the poverty level for a nonfarm family of four as $5,058 in July 1974. For a single person under 65, the figure was $2,570; if 65 or over, $2,373. For couples with the head under 65, the amount was $3,324; if 65 or over, $2,994. Because the rise in consumer prices throughout 1974 was close to straight line, the subcommittee estimates of poverty levels in July 1974 will probably turn out to be fairly close to official Census thresholds for calendar year 1974 when these are announced after the average CPI level for 1974 as a whole is computed. On the other hand, as a measuring rod for testing the adequacy of income transfer programs in 1975, the July 1974 figures are clearly too low, due to continuing inflation. By December 1974, prices were already 5 percent above the July level; hence poverty thresholds at the outset of 1975 will be at least 5 percent above the figures used in this handbook. Other services provided or available. The scope of services available because of beneficiary status is indicated. Benefits under other programs.-This section describes benefits from other programs for which the beneficiary of the specified program is automatically or presumptively eligible. NON-INCOME-TESTED SOCIAL INSURANCE AND RELATED PROGRAMS OLD-AGE, SURVIVORS, AND DISABILITY INSURANCE (OASDI) BASIC PROGRAM INFORMATION LEGISLATIVE OBJECTIVE. To partially replace income from work that is lost to workers and their dependents because of the worker's retirement in old age, disability severe enough to prevent substantial gainful employment, or death. DATE ENACTED AND MAJOR CHANGES SINCE ENACTMENT.-Old-age insurance was enacted in 1935; survivor insurance was enacted in 1939; and disability insurance was enacted in 1956. See supplementary material for legislative history. ADMINISTERING AGENCY.-The Social Security Administration of the U.S. Department of Health, Education, and Welfare. FINANCING. OASDI is financed by a payroll tax paid half by the covered employee and half by his employer, and a tax paid by selfemployed people on their earnings. For wages received during 1974, the combined tax rate for employee and employer for OASDI was 9.9 percent paid on all earnings up to $13,200; the tax rate for the selfemployed was 7 percent on the same amount. The employee's share of the tax for OASDI is deducted from his earnings along with the tax for hospital insurance of 0.9 percent for a total tax of 5.85 percent on earnings up to $13,200 in 1974. Effective January 1, 1975, social security taxes are levied on $14,100 of each wage earner's income. There is no change in combined tax rates of 5.85 percent each for employees and employers, and 7.9 percent for the self-employed. POPULATION COVERAGE.-About 90 percent of the Nation's employed labor force are paying contributions to the OASDHI program. About 91 percent of the Nation's elderly are either getting monthly cash benefits or will be eligible for their benefits when they or their spouses stop working; 95 percent of young children and their surviving parents can count on monthly survivor insurance benefits if the family breadwinner dies; and about 80 percent of people aged 21-64 have protection in the event of the breadwinner's long-term disability (either as insured workers or as dependents of insured workers). |